Philippine Energy Policy Wiki

DC2021-03-0009

Status
superseded
Confidence
high
Effective date
2021-03-17

Full title: Adopting a General Framework Governing the Operationalization of the Reserve Market in the Wholesale Electricity Spot Market and Providing Further Policies to Supplement DC2019-12-0018

Issued: March 2021 | By: Secretary Alfonso G. Cusi

Legal basis: RA 9136 (EPIRA), §§2 and 37; WESM Rules.

Supplements DC2019-12-0018 (co-optimized energy/reserve market) based on recommendations by the Ancillary Services Technical Working Group (AS-TWG Resolution No. 2020-04). Superseded for commercial operations purposes by DC2023-09-0026.

Key Provisions

Guiding Principles (Section 1)

  • Co-optimization of energy and reserves via the Market Dispatch Optimization Model (MDOM) for all 5-minute dispatch intervals [DC2021-03-0009, §1.2, 2021-03]
  • Non-discriminatory participation of all certified ASPs, including demand-side resources [DC2021-03-0009, §1.3, 2021-03]
  • Single buyer system: SO (NGCP) is the sole buyer for all AS requirements, whether sourced through Reserve Market or AS Procurement Agreements (ASPAs) [DC2021-03-0009, §§1.4, 3.5, 2021-03]
  • Sufficiency of reserves ensured through combination of ASPAs and Reserve Market procurement [DC2021-03-0009, §1.6, 2021-03]

Reserve Categories and Required Levels (Section 4)

CategoryRequired Level (per dispatch interval)
Contingency ReservesCapacity of the largest online generating unit
Regulating Reserves4% of total demand
Dispatchable ReservesCapacity of the second largest online unit

Reactive Power Support and Black Start AS are excluded from tradeable AS [DC2021-03-0009, §4.3, 2021-03].

Extended Participation (Section 5)

  • Embedded Generators allowed as ASPs per protocols in DC2019-02-0003 [DC2021-03-0009, §5.2, 2021-03]
  • Load facilities allowed as ASPs subject to ERC-approved accreditation procedure developed by SO [DC2021-03-0009, §5.3, 2021-03]
  • Third-party AS capability testing allowed pending ERC accreditation guidelines [DC2021-03-0009, §6, 2021-03]

Settlement (Section 8)

MO nets contracted reserves from spot quantities → bills SO → SO remits to MO → MO pays ASPs for spot quantities; SO settles contracted ASPA payments outside the market [DC2021-03-0009, §§8.1–8.5, 2021-03].

Three-Year Study Mandates (Sections 9–11)

SO, MO, and WGA each directed to submit studies within 3 years on: raise/lower reserve services, frequency regulation reserve levels under 5-minute dispatch, and price cap/floor calibration [DC2021-03-0009, §§9.8, 10.4, 11.4, 2021-03].

ERC Regulatory Mandates (Section 13)

  • Approve PDM for spot reserve transactions [DC2021-03-0009, §13.1.1, 2021-03]
  • Issue guidelines for third-party AS testing entity selection [DC2021-03-0009, §13.2.2, 2021-03]
  • Approve AS Procurement Agreements and renegotiations by SO [DC2021-03-0009, §13.2.3, 2021-03]

Pages Created/Updated

  • Updated: Reserve Market and Electricity Derivatives (WESM) (added DC2021-03-0009 to sources; expanded framework section with reserve categories table, single buyer, extended participation, settlement flow, 3-year study mandates)
  • Updated: meta/sources-index.md
  • Updated: meta/ocr-queue.md

Full text: Cleaned copy